SEBI Looking To Ease Some Disclosure Norms For Listed Entities: Report

The Securities and Exchange Board of India (SEBI) is reportedly considering easing certain disclosure norms for listed companies, encompassing areas, including related party transactions and disclosures by large shareholders.

As per Reuters’ report, SEBI suggested in its consultation paper published on Wednesday (June 26) that listed companies be given more time to publicly disclose litigations or disputes they are involved in.

Among other recommendations, the regulator proposed that companies, after being listed, will be eligible to seek shareholder approval for compensation or profit-sharing agreements on the terms, which were framed when the companies were private, Reuters also reported.

The New Delhi-based regulatory body has further amended SEBI (Prohibition of Insider Trading) Regulations 2015 and the regulation will be renamed as SEBI (Prohibition of Insider Trading) (Second Amendment) Regulations 2024.

This move by the SEBI alters to protect the insider from unexpected price movements, where the individual, at the time of formulation of  trading  plan,  provides  price  limits  within  the  range  specified  in  these  regulations.

This comes at a time when SEBI is set to vote on the norms to crack the whip on unregistered finfluencers at its upcoming board meeting today. Sources told Zee Business that the regulations may come up for vote as the markets regulator is looking to curb the revenue model of unregistered finfluencers in the country.

Since the beginning of this year, SEBI has been actively participating in shaping the norms for facilitating an order for the long standing queues of IPOs and smooth business operations.

In March, the markets regulator amended SEBI (Issue of Capital and Disclosure Requirements) Regulation 2018 to facilitate the ease of doing business for companies heading for IPO or funding raising.

A month ago, when the public listings on the SME platforms of the BSE and the NSE were on sharp rise, SEBI was reportedly looking to tighten the norms for these listings following certain complaints of misuse of these platforms, where it raised the minimum size of SME public offers to INR 30 Cr-INR 50 Cr.

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